Delegat Group (NZSE:DGL) GF Value Rank : 4 (As of Jun. 04, 2024)

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What is Delegat Group GF Value Rank?

Delegat Group has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Delegat Group's GF Value Rank

For the Beverages - Wineries & Distilleries subindustry, Delegat Group's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Delegat Group's GF Value Rank Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Delegat Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Delegat Group's GF Value Rank falls into.

Delegat Group GF Value Rank Related Terms

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Delegat Group (NZSE:DGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Delegat Group Ltd (NZSE:DGL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

15 Customs Street West, Level 31, Auckland, NTL, NZL, 1010

Website

https://www.delegat.com

Delegat Group Ltd is a wine production and distribution company. It markets its products under the Oyster Bay and Barossa Valley Estate brands. The group's primary source of revenue is derived by providing wine to third-party retailers and distributors. Its segments are Delegat Limited, Delegat Australia Pty Ltd, Delegat Europe Limited, Delegat USA, Inc, and Others. The group generates the majority of the revenue from Delegat Limited. It sells and markets its product through a combination of subsidiary companies based overseas or to customers and distributors directly in the New Zealand, Canadian, Asian and Pacific Island markets. Rest of the segments act as distributors and supports in the marketing of the products in their respective geographic regions.